Is prior written approval required from B Bops to transfer development rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer acknowledges that the rights and duties created pursuant to this Agreement are personal to Developer and its owners and that Company has granted the development rights in reliance upon the character, skill, business ability, financial capacity and attitude of Developer and its owners.
Therefore, without the prior written approval of Company, neither this Agreement nor the development rights (or any interest therein), nor any controlling ownership interest in Developer may be directly or indirectly, voluntarily or by operation of law, sold, assigned, conveyed, sublet, subfranchised or otherwise transferred (hereinafter collectively referred to as a "transfer") to any person or entity.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, prior written approval from B Bops is required to transfer development rights. B Bops grants development rights based on the character, skill, business ability, financial capacity, and attitude of the developer and its owners.
Specifically, the FDD states that neither the agreement nor the development rights, or any controlling ownership interest in the developer, can be directly or indirectly sold, assigned, conveyed, sublet, subfranchised, or otherwise transferred without B Bops' prior written approval. This requirement applies whether the transfer is voluntary or by operation of law.
This provision ensures that B Bops maintains control over who is developing their franchise locations and that any new developer meets their standards. A prospective franchisee should carefully consider this requirement, as it could impact their ability to exit the business or bring in new partners in the future. B Bops also has the right of first refusal.